The Rural Voice, 2004-11, Page 36News in Agriculture
Feds letting farmers down, Holm says
By Bonnie Gropp
The Canadian government is
letting the agricultural industry
down.
This was the message. voiced
strongly by Wendy Holm, P. Ag, to
the hundreds of people who turned
out to the annual Huron County
Federation of Agriculture's general
meeting in Brussels, October 21.
Holm, of Bowen Island, B.C., is
an award-winning agrologist, farm
columnist, economist and author.
She has provided economic and
policy analysis to Canada's farm
sector for over 30 years.
The title of her message was Hard
Ball: Playing to Win on the Farm
Trade Front. In his introduction to
Holm, Stephen Thompson of the
Clinton area, said that "few had done
what Holm can do." Noting that she
had left MP Paul Steckle, "tied up in
knots" and "speechless", Thompson
added, "It's always good to have
someone who can stir things up a
little bit."
To begin her talk, Holm listed
some statistics showing where
farmers stand internationally on
support for agriculture. The bottom
line was that compared to other
Organization for Economic Co-
operation and Development
countries, Canadian farmers are
losing ground. "That's what reports
are saying. Support is being cut faster
than for any other OECD nation."
The contribution to domestic
economy is 60 per cent more than
that of U.S. farmers. The country is
third lowest in terms of cost to food.
That food production creates a
significant number of jobs in this
country would be something, Holm
said, "you would think would create
respect. Our farmers are
outperforming."
Yet, Canadian farmers receive 53
per cent lower levels of farm support
than their American counterparts, she
said. For OECD nations, they are in
the middle.
"We are stronger in our economy,
creating more jobs, yet all of our
support measures are down —
drastically.
"In 20 years I have never seen a
32 THE RURAL VOICE
situation like this facing Canadian
agriculture. It's catastrophic and the
public doesn't understand."
She urged farmers to "speak in
one voice" and stated that Canada's
current minority government
provides the opportunity to do so.
Moving on to the BSE crisis,
Holm said the government should be
using the North American Free Trade
Agreement (NAFTA) to get the
border open to ruminant animals.
"When the one case of BSE was
found in May, 2003, we had the
scientific panel report in June that
said there was no danger. We should
have had that border open. America's
right to keep it closed is not there."
Holm explains that until NAFTA
this would have been based on
precautionary principle. "When in
doubt, don't."
However, now they have to show
there is a risk to another country and
cannot impost a restriction on trade if
there isn't. "Period," emphasized
Holm. "There is no question about
this."
The response to the crisis, was
that Canada was lucky because it was
the only country America had ever
given some access to with BSE.
Holm said this was the message
given to provincial ministers. She
spoke to B.C.'s agricultural minister
who said he had not been told about
the possibility of using NAFTA. "He
said the feds are telling a completely
different story."
On a radio talk show, Holm
mentioned NAFTA to then Ontario
agricultural minister Helen Johns.
"Her response was that we were
lucky, Canada is the first country the
States has given access to.
"I was becoming concerned that
here's this argument and no one's
using it."
A trade lawyer on that radio show,
Michael Woods, backed up Holm's
contention that NAFTA applies to
the crisis. "He said I was completely
right and Canada should be using it."
Holm got a letter from Woods
explaining the avenues that could be
pursued. Chapter 11, allows a
company to sue the government. This
is what the Alberta cattlemen are
currently pursuing. "What the
Americans did when they didn't open
the border is basically expropriate
that market share from Canadian
farmers and gave it to American
farmers."
The one drawback of Chapter 11
is that it is always breaking new
ground, said Holm. "There's no
certainty, but if it works it should
benefit the cattlemen."
Chapter 20, on the other hand, is a
"slam dunk".
"This is a panel ruling, a nation -
to -nation dispute. They broke the
rules and if we win they would have
to open the border immediately or we
penalize them. I'd like an export tax
on pharmaceuticals.
"NAFTA has teeth. It lets you do
this. Chapter 20 needs to happen and
should have in July 2003."
That the cattlemen are challenging
the U.S. with Chapter 11, without the
government backing them with
Chapter 20 is ridiculous, said Holm.
"The response of this government
has been a soft approach. But this is
killing our rural community. It's
destroying lives. When has this ever
happened? When has there been a
sector so abandoned by public
policy?"
Her response from federal
government as to why NAFTA
hasn't been used was that they didn't
want to prejudice negotiations.
"What negotiations? (Chapter 20) is
not a legal process, it's a panel
ruling. It's not personal, it's a right."
Another representative told Holm
that the industry hadn't asked for
Chapter 20 to be used. "Since when
is industry responsible for public
policy? How are they to argue their
rights under a trade defence?"
To rely on change after the U.S.
election is not a good idea, said
Holm. "This 'soon, soon, soon', we
keep hearing: we're not going to
have an industry left. If it doesn't
open after Nov. 3, how prepared are
we to continue the waltz with
Ottawa?"
Canadian response to the crisis,
also raised concerns for Holm. "The
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